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Several major finance companies also voluntarily reported ethnicity pay data for the period. The majority of major finance firms nonetheless made progress in narrowly closing their gender pay gaps, according to their disclosures. ETHNICITY PAY GAPSHalf of the 20 finance firms reviewed reported varying detail on ethnicity pay gaps, with some including insurer Phoenix doing so for the first time. Where pay gaps were further broken down by ethnicity, they showed the largest pay disparities were between Black and white employees. All the employers said in their pay gap reports they were taking steps to improve diversity, particularly at senior levels.

☆ UBS could see big gains after forced Credit Suisse merger. Big U.S. banks may also be winners, analysts say
▼ + stars: | 2023-03-20 | by ( Alex Harring | ) www.cnbc.com time to read: +5 min

UBS ' acquisition of Credit Suisse could lead to big gains for the Swiss bank. UBS agreed to buy Credit Suisse for 3 billion Swiss francs, or around $3.2 billion, in a forced deal announced Sunday. As part of the deal, Credit Suisse shareholders receive 1 UBS share for every 22.48 Credit Suisse shares they hold. But Barclays analyst Amit Goel wasn't so sure, cutting his view on European banks to neutral from positive on Monday. Wells Fargo's Mike Mayo, meanwhile, sees opportunity for U.S. banks coming out of the UBS takeover of Credit Suisse.

☆ From spying to Swiss bailout: How years of turbulence at Credit Suisse came to a head
▼ + stars: | 2023-03-17 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

The logo of Swiss bank Credit Suisse is seen at an office building in Zurich, Switzerland February 21, 2022. The announcement that Credit Suisse would borrow up to 50 billion Swiss francs ($54 billion) from the central bank came after consecutive sessions of steep drops in its share price. It made Credit Suisse the first major bank to receive such an intervention since the 2008 Global Financial Crisis. Scandals Credit Suisse is currently undergoing a massive strategic overhaul in a bid to address these chronic issues. These oversight failures resulted in a massive shakeup of Credit Suisse's investment banking, risk and compliance and asset management divisions.

"Sterling markets will continue to digest yesterday’s Budget delivered by Chancellor Jeremy Hunt as well as the broader global environment. Markets remain ambivalent whether the Bank of England will raise interest rates next week," said Hann-Ju Ho, senior Economist, Commercial Banking at Lloyds Bank. The European Central Bank (ECB), meanwhile, is a little behind the BoE in its quest to fight inflation. Traders attach a 60% chance of the ECB raising rates by 50 bps on Thursday, with a 40% chance of 25 bps. Money markets show investors expect ECB rates to peak around 3% later this year, compared with a peak of 4% just over a week ago.

"This is part of the process of the knob being turned to tighten financial conditions to make sure that we are on our way to normalising a higher interest rate world," Pick said. Shockwaves from the collapse of SVB put fresh pressure on bank stocks across Asia and Europe on Tuesday as worries about potential contagion to other lenders deepened. Morgan Stanley's Pick said the events of the last week may give the Federal Reserve pause for thought on its own rate plans. He was speaking ahead of closely-watched U.S. inflation data later in the day. Analysts at Goldman Sachs said in a note on Monday that U.S. banking stresses could spread directly to European banks.

LONDON, March 14 (Reuters) - British banks are not yet seeing a "flight to quality" in deposits among customers nervous about the safe-keeping of their money following the collapse of U.S. lender Silicon Valley Bank last week, Lloyds chief executive Charlie Nunn said on Tuesday. Shockwaves from the collapse of Silicon Valley Bank further pounded bank stocks across Asia and Europe on Tuesday as worries about potential contagion to other lenders deepened. Major U.S. banks including JPMorgan (JPM.N) and Citigroup (C.N) have seen a wave of customers applying to shift their accounts to larger lenders, the Financial Times reported on Tuesday. "We haven't seen what we've seen in the U.S., which is the flight to quality," Nunn said. "But let's see how that plays out and we'll see how people feel over the next period of time."

☆ Citi says Europe's banks are unlikely to face SVB-like issues and names 3 top picks
▼ + stars: | 2023-03-14 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

European banks are unlikely to experience the issues seen at U.S.-based Silicon Valley Bank , according to analysts at investment bank Citi, who named their three top stocks in the sector. 12, Citi analysts said there is "very limited read-across" to the European banking sector due to differences in reserve capital and regulatory framework. "In Europe we are not aware of any banks with such high deposit concentration risk," the Citi analysts added. European bank stocks to buy Citi analysts are overweight European banks, and said BBVA , Lloyds , Intesa were their "top picks." This means that European banks have not experienced a large drawdown in capital from a change in bond values, according to the analysts.

With assets of around 5.5 billion pounds and deposits of around 6.7 billion pounds, SVB UK is a minnow compared to HSBC. The situation was urgent because SVB UK had lost almost half of its deposits in the 48 hours leading up to its rescue, the source said. Officials from the Bank of England and Treasury along with board members from SVB UK were then locked in talks. HSBC also plans to inject 2 billion pounds of liquidity into SVB UK, a spokesperson for HSBC said. Advisory firm Rothschild, which advised SVB UK according to sources, also declined to comment.

[1/2] A notice hangs on the door of Silicon Valley Bank (SVB) located in San Francisco, California, U.S. March 10, 2023. "Silicon Valley Bank cannot be allowed to fail given the vital community it serves," Bank of London co-founder and CEO Anthony Watson said. But an executive at a major UK bank said it was unlikely a high street lender would buy SVB UK because its credit products would not be a good fit for a mainstream bank. EXISTENTIAL THREATMore than 250 UK tech firm executives signed a letter addressed to Hunt on Saturday calling for government intervention and warned of an "existential threat" to the UK tech sector, a copy seen by Reuters shows. Sunak has said he wants to turn Britain into the "next Silicon Valley".

☆ UK races to minimise SVB fallout amid reports of potential buyers
▼ + stars: | 2023-03-12 | by ( Andrew Macaskill | ) www.reuters.com time to read: +6 min

[1/2] A notice hangs on the door of Silicon Valley Bank (SVB) located in San Francisco, California, U.S. March 10, 2023. SoftBank-owned lender OakNorth Bank is weighing a bid to buy Silicon Valley Bank UK Ltd, a person with knowledge of the talks told Reuters, confirming a Sky News report. EXISTENTIAL THREATMore than 250 UK tech firm executives signed a letter addressed to Hunt on Saturday calling for government intervention and warned of an "existential threat" to the UK tech sector, a copy seen by Reuters shows. Hunt reiterated comments by the BoE that overall, Silicon Valley Bank had a limited presence in Britain and did not perform functions critical to the financial system. Sunak has said he wants to turn Britain into the "next Silicon Valley".

UK banks (.FTNMX301010) dropped to an eight-week low, spooked by a brutal rout in U.S. bank SVB Financial (SIVB.O) following a share sale. The FTSE 100 (.FTSE) slipped 1.9% to a five week low, while the more domestically focused mid-cap index (.FTMC) gave up 2.1% to hit a two-month low. The FTSE 100 is set to the end the week down about 2.8% in what could be its worst week since September, as worries around hawkish central banks sapped risk appetite. Next week, investors will be watching for UK Chancellor Jeremy Hunt's spring budget. Reporting by Susan Mathew in Bengaluru; Editing by Savio D'Souza and Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.

☆ British lawmakers ramp up pressure on banks over savings rates, exec pay
▼ + stars: | 2023-03-01 | by ( Iain Withers | ) www.reuters.com time to read: +2 min

The Treasury Committee noted profit margins at the four biggest British banks - Lloyds Banking Group (LLOY.L), NatWest (NWG.L), HSBC (HSBA.L) and Barclays (BARC.L) - increased in 2022 earnings published last month, while some also bumped up boardroom pay. The committee has asked the four banks to justify why they offer less than 1% interest on easy access savings accounts, despite the Bank of England benchmark rate rising to 4%. Banks reported robust profits for 2022 in earnings last month, but warned margins could already have peaked as competition steps up. Analysts have questioned whether political pressure could have been a factor in banks outlining cautious guidance on their future earnings potential. Reporting by Iain Withers; editing by Sinead Cruise, Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

Instead, despite reporting robust profits, banks' shares have broadly stumbled as they forecast margin pressure, suggesting intensifying competition for customers' deposits and mortage business to come. "It may be that we've seen the peak of margin," said William Chalmers, finance chief of Britain's biggest domestic bank Lloyds (LLOY.L) on Wednesday. Lenders say they have started to pass on higher rates to savers, adding that profitability is rebounding after years of low margins. Pressure to immediately increase the rates banks pay savers has been intensified by the digital offerings from U.S. entrants into the market such as JPMorgan and Goldman Sachs, executives at the top British lenders said. In contrast to floating rates, which broadly track the Bank of England benchmark, fixed mortgage rates have started to fall as competition intensifies.

☆ UK economy in 'a lot better shape' than bleak figures suggest, fund manager says
▼ + stars: | 2023-02-23 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

People walk outside the Bank of England in the City of London financial district, in London, Britain, January 26, 2023. Henry Nicholls | ReutersLONDON — The U.K. has thus far avoided a widely anticipated recession, and the signs from the business world are that the economy may be holding up better than feared, according to veteran Schroders fund manager Andy Brough. Figures published earlier this month showed that the U.K. GDP contracted by 0.5% in December, as the economy flatlined over the final quarter of 2022 to narrowly avoid a technical recession. "Underneath companies' profitability x-minus today, we're seeing pretty good dividend increases, pretty good earnings statements, so, underlying, I think the economy is in a lot better shape. 'Signs of life' in business investment Uncertainty over future relations between Westminster and Brussels have hammered business investment since the U.K. voted to leave the European Union in 2016, in turn hampering productivity expansion and adding to the direct costs of Brexit on the U.K. potential growth.

☆ Morning Bid: Hang on a minute
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +4 min

And so a speech from New York Fed chief John Williams make give a better steer on current thinking. Markets are now priced for a Fed 'terminal rate' in the 5.25-5.50% range by July and no cut from there by year-end. European central bankers are also talking tough as the region's economies dodge recession and inflation stays high. But geopolitical concerns rankle again ahead of Friday's anniversary, with Russia unilaterally withdrawing from a key nuclear arms control treaty. As G20 finance chiefs meet in India, the world is watching closely the extent of the alliance between Beijing and Moscow.

Lloyds set aside 1.5 billion pounds in 2022 to cover potential loan distress, a year after releasing 1.4 billion pounds of provisions as the economy rebounded from COVID-19. The bank reported pre-tax profit of 6.9 billion pounds ($8.4 billion) for 2022, unchanged on the previous year and in line with analyst forecasts it had compiled. It plans to pay a 1.6 pence per share final dividend and a share buyback of up to 2 billion pounds, taking total shareholder returns for 2022 up to 3.6 billion pounds. Expenses also rose 6% to 8.8 billion, partly due to rising wage bills as Lloyds boosted its staff bonus pool by 12% to 446 million pounds. Lloyds also said it had bought Tusker, a vehicle leasing company that provides electric vehicles via salary sacrifice schemes, for 300 million pounds.

☆ Lloyds full-year profit flat as bad loan charge weighs
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +1 min

LONDON, Feb 22 (Reuters) - Lloyds Banking Group (LLOY.L) reported flat annual profit for 2022 on Wednesday, as a jump in income driven by higher interest rates was offset by mounting bad loan provisions. Britain's biggest mortgage lender reported pretax profit of 6.9 billion pounds ($8.4 billion), unchanged on the prior year and in line with analyst forecasts compiled by the bank. The bank announced it would pay a 1.6 pence per share final dividend and a share buyback of up to 2 billion pounds, taking total shareholder returns for 2022 up to 3.6 billion pounds. Lloyds set aside 1.5 billion pounds over the year to cover potential defaults, compared to a 1.4 billion pound release of provisions in 2021 as the economy rebounded from COVID-19 lockdowns. Lloyds' revenue leapt 14% to 18 billion pounds and it raised its medium and long-term outlook for returns.

☆ London stocks fall as rate hike worries linger, Lloyds drags
▼ + stars: | 2023-02-22 | by ( Shashwat Chauhan | ) www.reuters.com time to read: +2 min

The blue-chip FTSE 100 (.FTSE) lost 0.9%, hitting its lowest level in over a week. The banking sector (.FTNMX301010) lost 1.4%, with shares of HSBC (HSBA.L) off 1.2% and Prudential (PRU.L) down 2.3%. London-listed shares of Rio Tinto (RIO.L) slumped 2.5% after the global miner posted a 38% drop in annual profit and more than halved its dividend. Those worries remain in focus ahead of the release, later in the day, of the minutes of the U.S. Federal Reserve's latest meeting. Despite the session's losses, the exporter-heavy FTSE 100 has had a strong start to the year, helped by some positive earnings and a stir in commodity prices.

☆ Wall Street analysts are warning stocks are about to come crashing down
▼ + stars: | 2023-02-22 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

Today's Fed minutes release should provide more insight on what's to come in March. So according to Wilson, stocks have entered this death zone after climbing too high too fast in hopes the Federal Reserve is about to pull back on its aggressive monetary policy. He's reiterated several times this year that the rally will lose steam, and he expects sticky inflation to push the Fed to hold interest rates higher for longer. The bank's analysts now see the Fed raising rates by 25 basis points in June, which would bring the terminal rate to a target range of 5.25-5.5%. "As [stocks] have reached even higher levels, there is now talk of a "no landing" scenario – whatever that means," Wilson noted.

☆ Morning Bid: Not if or when but how fast?
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Kai PfaffenbachA look at the day ahead in European and global markets from Anshuman Daga:Is it really good news? Probably yes, probably not. Fed funds futures traders are now pricing for the Fed's benchmark overnight interest rate to reach 5.36% in July and end the year at 5.18%. Asian stock markets floated in a sea of red on Wednesday following an ugly sell-off on Wall Street. Inflation data from Germany and Italy due later on Wednesday will offer clues on price pressures.

☆ Britain's Tesco to explore sale of banking unit, Sky News reports
▼ + stars: | 2023-02-18 | by ( ) www.reuters.com time to read: +1 min

Feb 18 (Reuters) - Britain's biggest retailer Tesco Plc (TSCO.L) is planning to review its presence in the UK banking sector in a move that could lead to a sale of its banking arm, Sky News reported on Saturday. The supermarket chain operator is lining up Goldman Sachs to advise on the future of Tesco Bank, the report said. The review was at a very preliminary stage and may not lead to a formal sale process, the report quoted sources as saying. A partial sale or joint venture could also be an option for the retailer, the report added, quoting one source. Tesco Bank, which was founded in 1997, has more than five million customers across its banking and insurance business, according to the data available on its website.

☆ NatWest outlook drags down shares despite profit leap
▼ + stars: | 2023-02-17 | by ( ) www.cnbc.com time to read: +1 min

The logo of NatWest, a retail unit of RBS, outside a bank branch in London, U.K., on Tuesday, June 26, 2012. NatWest warned on Friday that rising interest rates may not deliver the long-lasting earnings bonanza investors hope for, even though profit jumped by 33% last year. Shares in the bank fell as much as 9% as investors digested forecasts for profitability and costs for 2023, even as the bank reported annual pretax profit rose to 5.1 billion pounds ($6.1 billion) from 3.8 billion pounds. State-backed NatWest did increase payouts for shareholders, announcing a 10 pence per share final dividend and an 800 million pound share buyback. Rose's total pay package for 2022 jumped nearly 50% to 5.2 million pounds, up from 3.6 million pounds the previous year.

☆ NatWest calls time on UK banks’ rate-hike party
▼ + stars: | 2023-02-17 | by ( ) www.reuters.com time to read: +2 min

But NatWest Chief Executive Alison Rose has brought that excitement to an end. It’s surprising that Rose thinks lending margins have maxed out already. Higher rates take a while to feed into revenue because so many borrowers have long-term or fixed-rate debt, which reprices slowly. That would be a cause for celebration among households and firms with spare cash, but it might bring the bank share-price party to an end. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ This fund manager says there's a 'value gap' in European markets. Here's how he's playing it.
▼ + stars: | 2023-02-07 | by ( Samantha Subin | ) www.cnbc.com time to read: +3 min

There's a "value gap" in European markets, and that's creating a unique opportunity for investors to buy up top-notch financial and industrial names at a bargain, according to David Herro, chief investment officer of international equities at Harris Associates. European markets dropped sharply last year as war concerns mounted in Ukraine, energy prices surged, and the Chinese economy struggled. But even as share prices dropped, earnings continued improving, opening up what Herro calls a value gap. When it comes to international markets, Herro's got the credentials to support this type of declaration. "Just about every one of the major European financials is over capitalized, and distributing that money back to shareholders positions," Herro told CNBC.

☆ UK plans to reimburse scam victims 'fundamentally flawed,' lawmakers say
▼ + stars: | 2023-02-06 | by ( Iain Withers | ) www.reuters.com time to read: +2 min

LONDON, Feb 6 (Reuters) - Proposals to reimburse hundreds of millions of pounds to scam victims in Britain are "fundamentally flawed" and are taking too long to come into force, lawmakers said in a report published on Monday. So-called "authorised push payment" scams have become Britain's largest type of payment fraud and cost customers 583 million pounds ($715 million) in 2021. Lawmakers on Britain's powerful Treasury Select Committee criticised the plans and said mandatory reimbursements should begin this year at the latest, and not as late as 2024. "Putting an industry body in charge of reimbursing scam victims is like asking a fox to guard the henhouse," said Harriett Baldwin, chair of the Treasury committee. The PSR said it would consider all feedback before publishing its final position in May this year, adding it regulated payment system operators including Pay.UK.

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